New Gold(US:NGD)2021-02-20 02:05Financial Data and Key Metrics Changes - In Q4 2020, the company produced 120,567 gold equivalent ounces, which included 66,734 gold ounces from Rainy River and 16,362 gold ounces from New Afton, reflecting higher grades compared to the prior year quarter [9][10] - Q4 revenue was approximately $199 million, a 43% increase from the prior year quarter, driven by higher metal prices and production volumes [11] - The company recorded a net loss of $21.1 million or $0.03 per share in Q4 2020, compared to earnings of $0.00 per share in Q4 2019, but adjusted net earnings were $27.9 million or $0.04 per share [12] Business Line Data and Key Metrics Changes - Rainy River produced 83,096 gold ounces in Q4, with operating expenses per equivalent ounce lower than the prior year due to increased production and sales volume [10] - New Afton contributed 16,362 gold ounces in Q4, with significant progress in the B3 zone development expected to ramp up in 2021 [41][43] Market Data and Key Metrics Changes - The average realized price for gold was $1,623 per ounce, while copper was sold at $3.34 per pound in Q4 2020 [11] - The company expects to produce between 440,000 and 490,000 equivalent gold ounces in 2021, with gold production estimated between 322,000 and 352,000 ounces [17] Company Strategy and Development Direction - The company aims to position Rainy River for increased production and reduced costs, with a focus on free cash flow generation starting in 2021 [28][30] - New Gold is committed to health and safety, with a significant focus on environmental and social responsibilities [22][23] - The company plans to accelerate the development of the Intrepid Zone, which is expected to enhance production and extend the mine's life [35][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow in 2021, despite uncertainties in metal prices [61] - The company is focused on maintaining a healthy balance sheet while pursuing growth opportunities and optimizing operations [26][80] Other Important Information - The company completed a $200 million redemption of senior notes, leaving a balance of $100 million [15] - Capital expenditures for Q4 2020 totaled $69.2 million, primarily for sustaining capital projects at Rainy River and New Afton [14] Q&A Session Summary Question: Capital numbers for New Afton and Rainy River - Management explained that the capital range reflects the potential for performance improvements and development timelines [54][57] Question: Focus on free cash flow - Management confirmed a strong focus on achieving free cash flow, with expectations for positive cash flow generation in 2021 [60][61] Question: Mining, milling, G&A costs - Management indicated that specific unit costs would be referenced against the 43-101 report, with expectations for recovery in 2022 [63][64] Question: Permit limits on processing at Rainy River - Management discussed ongoing conversations regarding potential permit adjustments, emphasizing the importance of maintaining mine life [71][74] Question: Thoughts on monetizing streams - Management expressed no immediate need to monetize streams, preferring to retain strategic assets while focusing on free cash flow [78][82]